Winter Park, Florida 29/12/2015 - MMC Norilsk Nickel signed a binding agreement with Highland Fund to invest $100 million in the Bystrinsky gold and copper deposit, which is located in the Chita region of Russia and is only about 60 miles from the Chinese boarder.
Highland Fund is a state-sponsered consortium established by Chinese investment funds and corporations. It will acquire a 13.33 percent stake in the Bystrinsky project with a pre-money valuation of Bystrinsky project of $650 million.
Transaction proceeds will be used for project development purposes in the region, which Norilsk claims has an estimated 8.6 million tonnes of undeveloped copper reserves.
"[This partnership] is aimed at unlocking the full potential of the Bystrinsky project and is in line with company's strategy of de-risking the Bystrinsky development by bringing high-quality partners focused on the Asian markets and external financing to ensure its successful completion despite the challenging external environment," Vladimir Potanin, president of Norilsk Nickel, said in a statement.